Long Term Care Insurance Policies
Long-term care insurance is insurance that is designed to cover the care that is not normally covered by traditional health insurance, Medicare and/or Medicaid. It covers a variety of long-term services, including custodial and personal care. The care can be administered in all types of different settings, whether it is in the insured's home, at a community organization or at another facility. Many employers are currently offering this long term insurance to their employees.
Long-term insurance is ideal for individuals who feel that they will be unable to perform the basic functions of daily life, such as bathing, dressing, eating, walking and going to the bathroom. It is estimated that approximately 60 percent of those above age 65 will need some level of long-term care in their life. However, age is not necessarily a determining factor in the need for long-term care insurance as a significant number of adults between the ages of 17 and 64 currently receive long-term care.
This care insurance works by reimbursing policyholders a certain daily amount for those specific services that assist then with daily living activities. When signing up for the policy, an individual can choose a range of options and benefits that allows them to get the adequate services that they require. The cost of the policy is based upon a variety of factors, including the age of the insured when the policy is purchased, the maximum amount that the policy will pay per day, and the maximum number of days or years that the policy will pay.
There are basically two types of care insurance policies that are offered, which are tax qualified and non-tax qualified policies. The tax qualified policies are the most common and require individuals to meet certain criteria, such as being unable to perform at least two activities of daily living for a minimum of 90 days. The non-tax qualified policies require that an individual's personal physician state that they require care for medical reasons and the insurance policy will pay for this service.
Long-term insurance can be a lifesaver, literally. Find out more about this policy by contacting one of our trusted advisors.
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